The federal government’s easing of eligibility requirements for its home-loan refinancing program should allow more Arizonans to reduce their monthly mortgage payments.

But the program still doesn’t solve the bigger problem for many borrowers: owing much more than their homes are worth.

The U.S. Department of Housing and Urban Development this week extended the Home Affordable Refinance Program to borrowers who are up to 25 percent upside-down on mortgages guaranteed by Fannie Mae and Freddie Mac.
Read more about new refinancing rules…

The Obama administration has expanded its plan to use government-controlled lenders Fannie Mae and Freddie Mac to help struggling mortgage borrowers with homes that are worth far less than they paid for them during the housing bubble.

On Wednesday, the Federal Housing Finance Agency announced that Fannie Mae and Freddie Mac  are now authorized to refinance loans to borrowers with homes worth substantially less than their current mortgages–up to 25% less–under the Home Affordable Refinance Program (HARP). Initially, the program only helped borrowers who were slightly underwater, with loans worth up to 5% more than their residence. Read more about refinancing…